Compliance

Do contract workers need an appointment letter?

Yes. The OSH Code requires one on joining, and for a contract worker the contractor issues it. What it must contain, and what a site should check.

Two wooden-handled rubber stamps lying on a sheet of plain white paper beside a stack of cloth-bound files and a pad of ruled cards.

Yes. Section 6(1)(f) of the OSH Code 2020 requires every employer to issue a letter of appointment to every employee on joining, and the Code counts a contractor as an employer. So a contract worker gets the letter from the contractor, in a format the rules prescribe: sixteen fields under the Central Rules, nineteen under Tamil Nadu's draft. The rules bar employing anyone in the establishment without one, which is why the site should check.

Who issues it to a contract worker

The contractor does, as the worker's employer. Section 2(1)(u) of the OSH Code defines an employer as a person who employs one or more employees, "whether directly or through any person", and lists the contractor among those it includes. Section 6(1)(f) then puts the letter on every employer, "with such information and in such form as may be prescribed by the appropriate Government".

The site is not a bystander. Rule 6 of the OSH (Central) Rules 2026 is written as a condition of employment in the establishment, not just a duty on the contractor: "No employee shall be employed in any establishment unless an appointment letter has been issued to such employee". Tamil Nadu's draft rule 7 uses the same words. The Ministry of Labour and Employment made the same point to central government bodies that engage manpower through contractors. The Labour Secretary's letter of 24 April 2026 says the Code "requires employers to issue appointment letters to all employees, including contract labour", and asks those bodies to ensure it happens.

What the letter must say

A fixed list of fields, which differs between the Central Rules and Tamil Nadu's draft. Which set applies depends on the appropriate Government for the establishment. For most factories in Tamil Nadu that is the State, whose OSH rules were published in draft on 11 April 2022 [VERIFY: whether Tamil Nadu has since notified final rules, and whether the format survived].

FieldCentral Rules 2026, r.6Tamil Nadu draft 2022, r.7
Name, parent's nameYes (father's or mother's)Yes (father's)
Date of birthYesNo
Aadhaar numberYes, after obtaining consentYes
Establishment's Labour Identification Number (LIN)YesYes
Establishment's name, address and DISH registration numberNoYes
UAN and/or ESIC insurance numberYes, if availableYes, if available
Designation, category of skill, date of joiningYesYes
Type of employment (regular, fixed-term or contractual)YesNo
Wages, basic pay and dearness allowance; other allowancesYesYes
Avenue for higher wages or a higher positionNoYes
Whether EPF and ESI benefits applyYesYes, if applicable
Maternity benefits under the Social Security Code (women employees)YesNo
Construction Workers Welfare Board and Labour Welfare Board numbersNoYes
Health check-up detailsNoYes
Broad nature of duties; any other informationYesYes

The Central format ends with the employer's signature or digital signature. The Ministry's proforma, enclosed with the April 2026 letter, adds that it is to be issued "in English or Hindi and in local language". A letter in a language the worker cannot read does little of what the Code intends. For a contract worker, "contractual" is the type of employment the Central format expects [VERIFY: whose LIN, the principal employer's or the contractor's, the Rules expect on a contract worker's letter].

When it is due

On appointment, for anyone who joins now. Section 6(1)(f) says the letter is issued "on his appointment", and the rules bar employment without one, so it belongs before the first shift, not after the first payday.

  • Workers already on site when the Code started. Section 6(1)(f) gave an employee without a letter on the Code's commencement three months to receive one. The Code commenced on 21 November 2025, which puts that deadline in February 2026. The Central Rules prescribing the format were notified only on 8 May 2026 (G.S.R. 345(E)) [VERIFY: how that gap is treated for letters issued before the format was prescribed].
  • A letter in an older format. The Ministry's April 2026 letter says appointment letters that already contain the fields in its proforma "may be continued to be used". A contractor need not reissue a compliant letter on new paper, but should add any missing field.
  • A change of contractor. The new contractor is a new employer. A crew moving across at a changeover gets a letter from the incoming contractor, carrying their existing UAN and ESIC numbers.

The Code attaches no penalty to clause (f) by name. Its general penalty in section 94 makes "the employer or the principal employer" liable to between ₹2 lakh and ₹3 lakh for a contravention of the Code or its rules where no other penalty is expressly provided. Section 97(1) sets ₹50,000 to ₹1 lakh for contravening a provision or rule. Which applies to a missing letter, and to whom, is a question for the site's own counsel.

What a site should check

That a letter exists for every name on the gate register, and that it agrees with the other records. The letter is the first document in a worker's file, and the wage slip, the ECR and the ESIC challan should all tell the same story.

  1. A letter for every contract worker before the first shift, counted against the gate register, including the crew taken over from a previous contractor.
  2. The right format for the establishment: the Central fields or the Tamil Nadu fields, whichever set applies, and "contractual" as the type of employment where the Central format is used.
  3. The wage line agrees with the notified rate for the category of skill and zone, and with the rate on the worker's monthly wage slip.
  4. The UAN and ESIC number on the letter are the ones on the ECR and the challan, not an e-Shram number and not blank once the registrations are done.
  5. A copy the worker can read, in Tamil or the worker's own language where that is not Tamil.
  6. Aadhaar handled with consent, as the Central format requires. A site that keeps copies of the letters is holding Aadhaar numbers, and a copy with the number masked is enough to confirm a letter was issued.

How Velura Services helps

Every worker we deploy receives an appointment letter before the first shift, in the format the applicable OSH rules prescribe, with their UAN, ESIC number, category of skill and wage rate filled in, and in a language they read. A copy sits in the onboarding file a site can ask for, so the letter, the wage slip and the monthly PF and ESI returns carry the same figures.

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Sources

Frequently asked questions

Is an appointment letter mandatory for contract workers?

Yes. Section 6(1)(f) of the OSH Code 2020 requires every employer to issue a letter of appointment to every employee on joining, and the Code's definition of employer includes a contractor. The OSH (Central) Rules 2026 add that no employee shall be employed in any establishment unless the letter has been issued, and the Labour Ministry has said this covers contract labour.

Who issues the appointment letter to a contract worker, the contractor or the site?

The contractor, as the worker's employer under section 2(1)(u) of the OSH Code. The principal employer does not issue it, but the rules bar employing anyone in the establishment without one, so a site should check that every contract worker on its gate register has a letter before the first shift, in the format its applicable rules prescribe.

What must an appointment letter contain under the Labour Codes?

Under rule 6 of the OSH (Central) Rules 2026: name, date of birth, parent's name, Aadhaar number with consent, the establishment's LIN, UAN and ESIC number if available, designation, type of employment, category of skill, date of joining, wages and allowances, EPF and ESI applicability, broad duties, and maternity benefits for women employees. Tamil Nadu's draft rules use a nineteen-field format with some differences.

Did existing contract workers need new appointment letters?

Workers employed without a letter when the OSH Code commenced on 21 November 2025 were to be issued one within three months, under section 6(1)(f). The Labour Ministry's April 2026 letter says existing appointment letters that already contain the prescribed fields may continue to be used, so a compliant letter need not be reissued, only completed where a field is missing.